> For the complete documentation index, see [llms.txt](https://docs.basis.pro/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.basis.pro/strategies/eligibility-and-safety.md).

# Strategy Eligibility & Safety Rules

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Operator and jurisdiction: BASIS is operated by BASIS DIGITAL INFRASTRUCTURE LTD, a Seychelles IBC (LEI: [254900IX2F2KCWNSSS64](https://lei.bloomberg.com/leis/view/254900IX2F2KCWNSSS64)).
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Eligibility rules define the mathematical boundary between executable strategy logic and unacceptable risk.

BASIS applies deterministic eligibility gates so strategies run only when:

* expected value remains positive under conservative assumptions
* risk constraints are satisfied
* execution precision remains within defined tolerances
* state machine safety conditions remain valid

## 1) Universal eligibility gate

A generic gate for a structural alpha capture action:

$$
EV \ge 0 \quad \text{under conservative bounds}
$$

Conservative bounds include:

* worst-case slippage within defined percentile
* maximum fee schedule
* latency penalty
* safety margin for volatility
* settlement reliability constraints

If the gate fails, the system does not execute.

{% hint style="success" %}
BASIS prioritizes deterministic execution over activity volume. If mathematical constraints are not met, no action is taken.
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## 2) Venue eligibility

A venue must satisfy all of the following:

* operational health, including functioning withdrawals and stable API behavior
* minimum depth thresholds
* fee constraints
* risk score above minimum threshold
* consistent settlement behavior
* routing compatibility with BASIS infrastructure

If a venue fails health checks, it is excluded even if quoted spreads appear attractive.

Large spreads often indicate hidden execution risk, settlement impairment, or unstable market conditions.

## 3) Asset eligibility

Assets are eligible only when:

* liquidity is sufficient
* manipulation risk is low
* reliable pricing exists across venues
* settlement constraints are manageable
* inventory transfer paths remain operational

Low-liquidity assets are excluded even if they show frequent pricing gaps.

## 4) Safety rules (stop conditions)

### Slippage inversion

If slippage cost exceeds target edge, the system:

* cancels the action
* may enter protective mode if inversion signals market stress
* tightens execution thresholds if needed

### Withdrawal halt or settlement disruption

If a major venue halts withdrawals for a relevant asset, the system:

* reduces new exposure
* may unwind positions dependent on settlement
* may suspend affected strategy paths until normal conditions return

### Abnormal price feed

If oracle or feed input is inconsistent, the system:

* rejects trades
* isolates affected signals
* may escalate to BSCB if the condition is systemic

### Infrastructure degradation

If routing, latency, or execution acknowledgment falls outside accepted bounds, the system:

* stops affected actions
* reroutes where possible
* preserves capital over throughput

## 5) Why this matters for users

These safety rules explain why:

* strategies may pause
* reward accrual may slow temporarily
* withdrawals may follow operational waiting periods depending on network and asset type

These are protective behaviors of a survivable system, not failures of system design.

{% hint style="warning" %}
Withdrawal timing depends on the asset rail:

* BTC: typically 10 to 60 minutes
* ETH / SOL / PAXG: typically 1 to 10 minutes

(Note: Unstaking from fixed pools requires an additional 7-day buffer before these withdrawal times apply.)
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## 6) System design principle

BASIS is built around deterministic execution, mathematical constraints, and state machine risk controls.

This includes:

* conservative eligibility gating
* infrastructure-aware execution precision
* bounded exposure logic
* fail-safe halts under abnormal conditions

BHLE infrastructure supports this with:

* sub-50μs latency
* 100K+ OPS capacity
* proprietary routing infrastructure

These controls are designed to support structural alpha capture while limiting non-deterministic risk.

***

For the formal state model, read: Risk to BSCB and Risk to DMM.